Lifetime Earnings: College vs. High School Grads

A new measure of lifetime earnings by educational attainment finds the earnings gap between college and high school graduates to be smaller than previous studies have estimated—but still worth the expense of going to college. 

In their lifetime, men with a bachelor's degree earn $840,000 more than men with no more than a high school diploma, according to a study in Demography. Their female counterparts earn $587,000 more. These estimates are more realistic than those produced by previous studies, say the authors, because they're based on real earnings over a lifetime: the researchers matched a panel of respondents in the longitudinal Survey of Income and Program Participation to their Social Security earnings records, then compared earnings by educational attainment. Most previous studies of lifetime earnings have been done synthetically, using a snapshot of earnings by age and education from cross-sectional surveys. 

Although the financial benefit of a college degree is not the lofty 84 percent found by previous studies, but only 43 percent for men and 51 percent for women, the authors note that a college education is still worth the expense. The $52,000 tuition price tag for a four-year degree (the average in 2010, according to the National Center for Education Statistics) is only a fraction of the lifetime earnings boost college graduates can expect. 

Source: Demography, Education and Lifetime Earnings in the United States ($39.95)

Generational Labels

Percentage of each generation that identifies with the generation's name...

Millennials: 40%
Generation X: 58%
Baby Boomers: 79%

Source: Pew Research Center, Most Millennials Resist the "Millennial" Label

Average Household Spending Rises in 2014

The average household spent $53,495 in 2014—3 percent more than in 2013, after adjusting for inflation. This is good news and it may signal an energized economy. Household spending reached an all-time high of $56,833 in 2006 (in 2014 dollars). In the years since, average household spending has fallen fairly steadily, reaching a low of $51,929 in 2013. 

Necessities accounted for some but not all of the spending boost between 2013 and 2014. The average household spent 7.5 percent more on rent, after adjusting for inflation, but it also spent 9.6 percent more on apparel—a category that had been in long-term decline. Spending on entertainment climbed 8.2 percent, and spending on food away from home was up 4.5 percent. Spending on gasoline was down 7 percent. Health insurance spending in 2014 is not comparable to earlier years because of changes in the way the Consumer Expenditure Survey collects the data. 

Average household spending (in 2014 dollars)
2014: $53,495
2013: $51,929
2012: $53,042
2011: $52,312
2010: $52,230 
2006: $56,833
2000: $52,303

Source: Bureau of Labor Statistics, Consumer Expenditure Survey

Heart Age vs. Chronological Age

Chances are, your heart is older than you are. That's what the CDC discovered when it estimated the "heart age" of a representative sample of Americans aged 30 to 74. Using the Framingham Heart Study's cardiovascular risk factor system, the CDC estimated the sample's vascular age and compared it to their chronological age. In every demographic segment, heart age exceeded chronological age, sometimes by a wide margin.

Take a look at the findings for men. The average chronological age of men in the sample was 47.8. The average heart age of men in the sample was 55.6. Nearly half (49 percent) of men had a heart age that exceeded their chronological age by at least five years. Here are the results by age group...

Men aged 30 to 39
Average chronological age 34.3
Average heart age: 38.1
Heart age exceeds chronological age by 5-plus years: 33%

Men aged 40 to 49
Average chronological age 44.4
Average heart age: 50.3
Heart age exceeds chronological age by 5-plus years: 41%

Men aged 50 to 59
Average chronological age 54.1
Average heart age: 64.5
Heart age exceeds chronological age by 5-plus years: 58%

Men aged 60 to 74
Average chronological age 65.7
Average heart age: 79.5
Heart age exceeds chronological age by 5-plus years: 73%

Source: CDC, Vital Signs: Predicted Heart Age and Racial Disparities in Heart Age Among U.S. Adults at the State Level

Children Per Household, 1964 to 2014

Remember when neighborhoods were full of children? This is why they aren't anymore: the average number of children (people under age 18) per household peaked in 1964 (also the last year of the baby boom) at 1.24. Since then, the average has fallen in most years. It slipped below 1.0 for the first time in 1974 and reached an all-time low of 0.60 in 2014—less than half of the 1964 level...

Average number of people under age 18 per household
2014: 0.60
2010: 0.64
2000: 0.69
1990: 0.69
1980: 0.79
1970: 1.09
1964: 1.24

Source: Census Bureau, Historical Time Series, Households

The New Income Estimates

The Census Bureau thinks long and hard before tinkering with the all-important Current Population Survey Annual Social and Economic Supplement (CPS ASEC), from which emanates much of what we know about the economic status of the American people. But sometimes change is necessary, and this is one of those times. The Census Bureau has been working on a redesign of the ASEC income questions for 14 years, attempting to improve the accuracy of the nation's official income statistics. When the bureau releases the 2015 CPS ASEC results on September 16 (with income data for 2014), the redesign will be fully implemented. Here's what you need to know...

• A redesign of the CPS ASEC income questions has been sorely needed, in part because the original questions failed to capture most withdrawals from IRAs and 401(k)s. The redesign counts these withdrawals as income. 
• Analyzing income trends will be problematic—at least in the short run. Data from the redesigned questions are not comparable with data from the original questions. To provide a bridge, the Census Bureau has released 2013 income data from a 2014 ASEC sample that was asked the new questions. At the above link, there are two sets of 2013 tables—the original and the redesign, allowing researchers to compare the original numbers with the redesign and also to determine the 2013-to-2014 trend when the 2014 data are released on September 16. 
• The redesigned income questions boosted overall aggregate income in 2013 by 4.2 percent, according to a comparison of data from the original and redesigned questions. While earned income did not change, unearned income was 12.4 percent higher in the redesign. 
• Median household income in 2013 was 3.2 percent greater with the redesigned questions. While there was no statistically significant change in median household income among younger adults, the median income of households headed by people aged 55 or older was about 5 percent higher primarily because of retirement account withdrawals. 
• Many more Americans reported receiving income from an IRA, Keogh, or 401(k)—the figure rising from 1 million in the original to 5 million in the redesign.

It will take a while to digest these changes. The Census Bureau plans to provide a research file with adjusted income data, allowing for historical comparisons. Until then, the starting point for income trend analysis will be 2013.

Source: Census Bureau, 2013 Income, Poverty, and Health Insurance Products Based on Redesigned Current Population Survey Annual Social and Economic Supplement Questions

Walking/Bicycling as Transportation

On an average day, only 10 percent of Americans walk or bicycle as transportation (rather than exercise)—meaning they walk or bicycle to get from point A to point B. Although urban populations have been growing in recent years, the percentage who walk or bicycle as transportation has fallen slightly over the past decade—from 11.8 percent in 2003 to 10.3 percent in 2012, according to the American Time Use Survey. Younger adults are most likely to walk or bicycle as transportation on an average day. Here are the 2012 stats by age...

Percent who walked or bicycled as transportation in past 24 hours
Aged 16 to 39: 14.0%
Aged 40 to 59: 8.4%
Aged 60-plus: 6.9%

Source: CDC, Active Transportation Surveillance—United States, 1999-2012

How Spending Has Changed Since World War II

The average American household spends differently than its counterpart did in the 1940s, according to an analysis in the Monthly Labor Review. Here are the most striking changes in the share of the household budget devoted to...

Food and alcohol (-19.7 percentage points)
2013: 16.2%
1944: 35.9%

Housing (+14.1 percentage points)
2013: 40.2%
1944: 26.1%

Clothing (-12.7 percentage points)
2013: 3.3%
1944: 16.0%

Transportation (+14.1 percentage points)
2013: 20.4%
1944: 6.3%

Medical care (+2.7 percentage points)
2013: 8.2%
1944: 5.5%

The share of household spending devoted to recreation and entertainment climbed from 2.8 to 5.6 percent between 1944 and 2013, and the share devoted to education more than tripled—growing from just 0.6 to 2.1 percent. Conversely, the share of household spending devoted to tobacco fell from 2.0 to 0.7 percent, and the share devoted to reading plummeted from 1.1 to just 0.2 percent. Note: For comparative purposes, spending data are adjusted to exclude gift purchases, cash contributions, personal insurance, and pensions.

Source: Bureau of Labor Statistics, Monthly Labor Review, Consumer Spending in World War II: the Forgotten Consumer Expenditure Surveys

Age Distribution of CEOs

More than 1.6 million American workers are CEOs, according to the Bureau of Labor Statistics. Not surprisingly, CEOs rank among the oldest workers. Their median age is 52.3, well above the median age of 42.3 for all workers. Here is the age distribution of the nation's CEOs...

Under age 25:  0.7%
Aged 25 to 34: 8.4%
Aged 35 to 44: 18.0%
Aged 45 to 54: 32.3%
Aged 55 to 64: 30.4%
Aged 65-plus: 10.2%

Source: Bureau of Labor Statistics, Current Population Survey

Automobile Alternatives

The five metropolitan areas with the lowest rate of commuting to work by automobile and their second most common mode of commute...

1. New York-Newark-Jersey City, NY-NJ-PA
Automobile: 56.9%
Subway or elevated rail: 18.9%

2. Ithaca, NY
Automobile: 68.7%
Walk: 17.5%

3. San Francisco-Oakland-Hayward, CA
Automobile: 69.8%
Bus or trolly bus: 7.6%

4. Boulder, CO
Automobile: 71.9%
Work at home: 11.1%

5. Corvallis, OR
Automobile: 72.6%
Bicycle: 8.8%

Source: Census Bureau, Who Drives to Work? Commuting by Automobile in the United States: 2013

Who's Looking for a New Job?

Only 39 percent of American workers say it is somewhat or very likely they will try to find a new job with another employer within the next year, according to the General Social Survey. Half of Millennial workers are job hunting...

Likely to look for a new job in the next year
Millennials: 50%
Gen Xers: 40%
Boomers: 27%
Older Americans: 7%

Note: Millennials are 20-37; Gen Xers are 38-49; Boomers are 50-68.
Source: Demo Memo analysis of the 2014 General Social Survey

Drinking and Driving

Only 1.8 percent of Americans aged 18 or older admit to driving while drunk in the past 30 days, according to the CDC. Here is the percentage by age...

Drove while alcohol-impaired in past 30 days
18-20: 1.4%
21-24: 4.2%
25-34: 3.0%
35-54: 1.9%
55-plus: 0.8%

Source: CDC, Alcohol-Impaired Driving among Adults — United States, 2012

37% of Workers Have Telecommuted

Thirty-seven percent of American workers have ever telecommuted, according to a Gallup survey. Telecommuting is defined as working from home using a computer to communicate for a job. This is the highest level of telecommuting recorded by Gallup and far above the 9 percent who ever telecommuted the first time Gallup asked the question in 1995.

Workers who have ever telecommuted typically do so a median of three days a month. But 24 percent say they telecommute more than 10 days a month—or at least half of their work days.

Source: Gallup, In U.S., Telecommuting for Work Climbs to 37%

A Decline in Commuting to Work by Automobile

The percentage of American workers who commute by automobile is on the decline, peaking at 87.9 percent in 2000 and falling to 85.8 percent by 2013, reports the Census Bureau. Much of the decline in automobile commuting is due to less carpooling. The percentage of workers who carpool fell to its lowest point in 2013—9.4 percent, and less than half of the 19.7 percent of 1980. But the percentage of workers who drive alone to work alone has also fallen (very) slightly in recent years—from the all-time high of 76.6 percent in 2010 to 76.4 percent in 2013.

Percentage of workers who drive alone to work
2013: 76.4%
2010: 76.6%
2000: 75.7%
1990: 73.2%
1980: 64.4%

Source: Census Bureau, Who Drives to Work? Commuting by Automobile in the United States: 2013

Death by Injury in 2013

Injury is a major cause of death in the United States. Unintentional injuries (accidents) are the 4th leading cause of death, according to the National Center for Health Statistics. Add in the intentional injuries (suicides, homicides, executions, and combat deaths), and nearly 200,000 Americans died of injuries in 2013...

Deaths due to injury
Total injury deaths: 192,945
Unintentional: 130,557
Suicide: 41,149
Homicide: 16,121
Undetermined: 4,587
Legal intervention/war: 531

The government categorizes injury deaths by their cause: poisoning (48,545), firearms (33,636), motor vehicles (33,804), falling (31,240), suffocation (17,316), drowning (4,056), fire (3,220), cutting or stabbing (2,576), environmental (1,535), being struck (936), machinery (588), overexertion (13), and many thousands of injury deaths due to other causes.

The role of accidents—as opposed to suicide or homicide—varies by type of injury. Among poisonings, fully 80 percent of deaths are accidental. Among drownings, accidents account for an even larger 84 percent. For falls, the figure is 97 percent. But accidents are a tiny share of firearm deaths—just 505 people died due to the accidental discharge of a firearm in 2013. The 63 percent majority of firearm deaths are suicides and 33 percent are homicides.

Source: National Center for Health Statistics, Detailed Tables for Deaths: Final Data for 2013

Rise of the Non-Religious

Percent of people aged 18 or older who say they have no religious preference, 1972 to 2014...

2014: 21%
2010: 18%
2000: 14%
1990:   8%
1980:   7%
1972:   5%

Source: Demo Memo analysis of the General Social Survey

Guns: Rural vs. Urban

Americans are pretty evenly split on whether it is more important to protect gun rights or control gun ownership, according to a Pew survey—47 percent say gun rights and 50 percent say gun control. There is a huge difference of opinion between urban residents and rural folk, however...

Urban: 60 percent say gun control is more important, 38 percent gun rights.
Suburban: 48 percent say gun control is more important, 48 percent gun rights.
Rural: 35 percent say gun control is more important, 63 percent gun rights.

Source: Pew Research Center, Continued Bipartisan Support for Expanded Background Checks on Gun Sales 

Peak Transportation Spending

Has household spending on transportation peaked? It looks that way. The average household devoted 17.5 percent of its budget to transportation in 2013-14. While this is more than the Great Recession low of 15.6 percent in 2008 (the smallest since the early 1960s), it remains well below the 19-plus percent of the 1980s and early 2000s.

Transportation is our second biggest expense. In 2013-14, the average household devoted $9,104 to transportation, most of it for vehicles and gasoline. The evolution of this major household expense has been documented by the Bureau of Labor Statistics' consumer expenditure surveys. In the earliest, taken in 1901 and 1918-19, there was no separate spending category for transportation, so minor was the expense. As cars became common, transportation became a category. In 1934-36, transportation consumed 8 percent of average household spending. At the time, 40 percent of households owned a vehicle. The figure climbed over the decades, peaking in 2008 at 89 percent. In 2013-14, a smaller 87 percent of households owned a vehicle. The average number of vehicles per household fell to 1.8, down from 2.0 as recently as 2009.

With households holding on to their vehicles longer (the average age of light vehicles is now 11.4 years, up from 9.1 in 2000), greater fuel efficiency, increased urbanization, and the rise of ride sharing services, it looks like peak transportation spending may be in our rearview mirror.

Source: Demo Memo analysis of Bureau of Labor Statistics' Consumer Expenditure Surveys

When Building Wealth, Timing Is Everything

When it comes to building wealth, timing is everything. Gen Xers are learning this the hard way, according to an analysis of American debt by The Pew Charitable Trusts.

Many Gen Xers bought houses when prices were peaking during the housing bubble. Now they owe more in mortgage debt than any other generation and $8,000 more than Boomers did at the same age (in 2013 dollars)...

Median housing debt at age 40
$69,602 for Gen Xers in 2013
$61,437 for Boomers in 1995

The timing is better for Millennials. By delaying homeownership, they have less housing debt than Gen Xers did at the same age (in 2013 dollars)...

Median housing debt at age 27
$17,429 for Millennials in 2013
$22,255 for Gen Xers in 1998

"These data show that the timing of home purchases for each of the generations has contributed to very different debt profiles," concludes the report. Pew's analysis of debt also includes education loans, vehicle loans, and credit card debt.

Source: The Pew Charitable Trusts, The Complex Story of American Debt

More Renters in Single-Family Homes

"The recent growth of single-family rentals is unprecedented," reports the Joint Center for Housing Studies in its report, The State of the Nation's Housing 2015.

According to data from the American Housing Survey, the number of renters who live in a single-family house grew 30 percent between 2007 and 2013. This is twice as fast as the growth in renter households overall and far surpasses the 8 percent increase in the number of renters who live in multi-family buildings...

Renter-occupied housing units in 2013 (and % change since 2007)

Total renter-occupied housing units: 40,201,000 (15%)

Renter-occupied single-family homes: 14,222,000 (30%)

Renter-occupied units in multi-family buildings: 24,420,000 (8%)

Renter-occupied mobile homes: 1,559,000 (4%)

Source: Joint Center for Housing Studies of Harvard University, The State of the Nation's Housing 2015; and Census Bureau, American Housing Survey